For the second quarter ended May 27, 2018, Levi Strauss & Co. reported
net revenues growth of 17 percent on a reported basis and 13 percent
excluding 35 million dollars in favourable currency translation effects,
driven by broad-based Levi's brand growth in all regions and channels. On a
reported basis, direct-to-consumer revenues grew 19 percent on performance
and expansion of the retail network, as well as ecommerce growth. The
company said, it had 53 more company-operated stores at the end of the
second quarter of 2018 than it did a year prior.

"We delivered our third consecutive quarter of double-digit revenue
growth, driven by the disciplined execution of our strategies and our more
diversified portfolio. These results have outpaced the industry and
exceeded even our own expectations, and as a result, we are raising our
full-year revenue guidance," said Chip Bergh, President and CEO, Levi
Strauss & Co. in a statement.

Review of Levi Strauss’s Q2 performance

Wholesale reported revenues, the company said, grew 14 percent
reflecting higher revenues in all regions. Net income for the quarter
increased 59 million dollars primarily reflecting gains on the company's
hedging contracts in the second quarter as compared with losses on hedging
contracts and a debt refinancing charge in the second quarter of 2017.
Adjusted EBIT, the company added, grew 15 percent reflecting the revenue
growth and higher gross margins, partially offset by higher SG&A.

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On a reported basis, gross margin was 53.9 percent of revenues compared
with 52.3 percent in the same quarter of fiscal 2017. Operating income was
77 million dollars, up 22 percent compared to the same quarter last year
reflecting the revenue growth and higher gross margins, partially offset by
higher SG&A.

Levi Strauss results across geographies

In the Americas, Levi Strauss said, excluding favourable currency
effects of 1 million dollars, net revenues grew 11 percent reflecting
higher revenues across wholesale and direct-to-consumer channels across the
region. The region's operating income declined 5 percent as higher revenues
were more than offset by planned increased direct-to-consumer and
advertising expenses this quarter.